Customer Mobile Behavioral Segmentation and Analysis in Telecom Using Machine Learning

Abstract

ABSTRACT This study aims to identify telecom customer segments by utilizing machine learning and subsequently develop a web-based dashboard. The dashboard visualizes the cluster analysis based on demographics, behavior, and region features. The study applied analytic pipeline that involved five stages i.e. data generation, data pre-processing, data clustering, clusters analysis, and data visualization. Firstly, the customer’s dataset was generated using Faker Python package. Secondly was the pre-processing which includes the dimensionality reduction of the dataset using the PCA technique and finding the optimal number of clusters using the Elbow method. Unsupervised machine learning algorithm K-means was used to cluster the data, and these results were analyzed and labeled with labels and descriptions. Lastly, a dashboard was developed using Microsoft Power BI to visualize the clustering results in meaningful analysis. According to the results, four customer clusters were obtained. An interactive web-based dashboard called INSIGHT was developed to provide analysis of customer segments based on demographic, behavioral, and regional traits; and to devise customized query for deeper analysis. The correctness of the clustering results was evaluated and achieved a satisfactory Silhouette Score of 0.3853. Hence, the telecom could target their customers accurately based on their needs and preferences to increase service satisfaction.